Protect Your Paycheck and Financial Future with Disability Insurance
Open enrollment season brings a familiar routine. Employees review medical plans, compare deductibles, and choose coverage for their health needs. But employees often overlook one critical benefit: disability insurance.
Consider a dual-income household earning $120,000 a year. One partner earns $60,000. Complications during pregnancy force that partner to go on leave for three months. The household loses $15,000 in pre-tax income. Mortgage payments, utilities, groceries, medical bills, and other monthly bills keep coming. Savings shrink. They may turn to credit cards. Financial goals slip.
Many people focus on health insurance during open enrollment but spend little time evaluating how they would replace income if a health condition kept them from working. The risk of going without coverage may be greater than you think.
This enrollment season, consider giving disability insurance a closer look.
Recognize the Real Risk
According to a 2025 actuarial study by the Social Security Administration, approximately one in four 20-year-olds can expect to experience a disability that keeps them out of work for at least a year during their working lives. If an illness or injury prevented you from working, how long could your household maintain its current lifestyle without a paycheck?
Many employees underestimate both the likelihood and financial impact of a disability. Among those who decline disability insurance, 31% of those surveyed believe the coverage is too expensive, while 30% feel they won’t need it. But if an illness or injury makes it impossible to work, disability insurance can help provide an important source of income and financial stability.
Employers may offer two types of disability coverage: short-term disability (STD) and long-term disability (LTD). Together, these coverages can help provide financial protection throughout different stages of an absence.
STD coverage provides benefits for shorter periods away from work due to qualifying medical reasons. Benefits typically begin after a brief waiting period and can provide income replacement for several weeks or a couple of months, depending on the plan.
LTD coverage is designed for longer recovery times or prolonged health conditions. LTD benefits typically pick up where short-term disability benefits leave off, providing ongoing protection when treatment and recovery require an extended period away from work.
Protect Your Paycheck and Financial Future
When paychecks are interrupted by a medical condition or injury, it’s more than a health challenge. It can also create a significant financial challenge. Everyday financial obligations and bills continue, causing the gap between income and expenses to grow quickly. A recent study from Lincoln Financial and the Employee Benefit Research Institute (EBRI) found that only 56% of surveyed workers have savings set aside for unexpected medical expenses.
In the scenario above, a three-month absence could result in a $15,000 loss of income. For many households, covering that shortfall through savings alone may not be realistic.
That’s why income protection matters. Disability insurance goes beyond protecting your paycheck; it helps protect the life your income supports.
Disability benefits may help you continue to pay for:
- Housing
- Utilities
- Groceries
- Transportation
- Childcare
- Student loans
- Savings goals
- Everyday living expenses
Modern disability coverage often provides more than income replacement. Depending on your employer’s plan, it may also include valuable support services such as employee assistance programs, mental health resources, return-to-work support, rehabilitation services, and financial planning tools. Together, these offerings can help strengthen financial resilience, support overall well-being, and improve quality of life during a challenging time.
Enroll with Confidence
A careful review of plan and coverage options can help determine the level of coverage right for your situation. However, about half of employees spend less than an hour reviewing enrollment materials. A limited review can mean missing important protections and programs. Consider answering these questions to make sure you’re addressing your current needs each year during benefits enrollment:
- What are my monthly expenses? What financial obligations depend on my paycheck?
- How much of my monthly income would I need to replace to pay the bills?
- How long could my savings cover household and daily expenses?
- Would my family be prepared if I could not work for several months?
- Do my needs differ from last year? Has my financial situation or lifestyle changed?
Your paycheck supports more than your monthly bills; it supports the life you’ve built. Disability insurance helps protect that life. This enrollment season, take time to review your options and ask whether your current protection aligns with your needs. A few minutes now can help safeguard your income, your lifestyle, and your financial future.
